Friends, This info is really Interesting if you are in 20% OR 30% of tax slab and want some secure returns … J
Best Regards,
Chirag Gandhi
“We do not inherit the earth from our ancestors; we borrow it from our children.”
~~~ Native American Proverb
Sent: Monday, August 12, 2013 12:08 PM
Subject: Key Highlights - Tax Free Bonds Notification -FY 2013 - 14
Current Offerings with Online form > http://www.oxyzen.co.in/html/current_nfo.htm
Dear All,
The key highlights of the CBDT notification dated 8th August 2013 regarding Tax Free Bonds - FY 2013 - 14:
1. The following entities have got with the below stated limits for raising out funds through tax free bonds in the Current FY:
| Sr No. | Entities | Allocated Amount of Bonds (Rs. In Crores) |
| 1 | Cochin Ship yard Ltd. | 250 |
| 2 | Ennore Port Limited | 500 |
| 3 | Airport Authority of India Ltd. | 500 |
| 4 | India Infrastructure Finance Company Limited | 10000 |
| 5 | Indian Renewable Energy Development Agency Limited | 1000 |
| 6 | Housing & Urban Development Corporation | 5000 |
| 7 | Rural Electrification Corporation Ltd. | 5000 |
| 8 | National Housing Bank | 3000 |
| 9 | Power Finance Corporation Ltd. | 5000 |
| 10 | Indian Railway Finance Corporation Ltd. | 10000 |
| 11 | National Highways Authority of India | 50000 |
| 12 | NHPC Ltd. | 1000 |
| 13 | NTPC | 1750 |
2. Categories
| Retail (shall include Individual Investors, HUF, & NRI applying upto Rs. 10 Lakhs) |
| High Net worth Individuals(shall include Individual Investors, HUF, & NRI applying above Rs. 10 Lakhs) |
| Corporate |
| QIB |
3. Tenure: 10,15 & 20 Years.
4. Coupon Rates:
A. The ceiling coupon rate for AAA Rated Company
| Category | Coupon Rate |
| Retail Individual Investors | *Reference G Sec rate Less 55 basis points |
| QIB/Corporate/ HNI | *Reference G Sec rate Less 80 basis points |
# The higher ROI available to retail will not be available if the bonds are transferred by RII to Non Retail.
B. The ceiling coupon rate for “AA+” Rated Company – The ceiling coupon shall be 0.10% above the ceiling for AAA Rated entities.
C. The ceiling coupon rate for “AA” or “AA-” Rated Company – The ceiling coupon shall be 0.20% above the ceiling for AAA Rated entities.
* The reference G Sec = Average of the base yield of G Sec for Equivalent Maturity as per FIMMDA on a daily basis prevailing for two weeks ending on Friday immediately preceding the filing of ROC in case of Public Issue.
5. Public Issue: 70% of aggregate amount bond issued by each entity shall be raised through Public issue; 40% of public issue shall be reserved for retail.
6. Issue Expense cap: For Private Placement- 0.25%, For Public issue-0.65%.
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